Gameskraft Cuts 280 Jobs as Gaming Company's Layoff Count Climbs to 400

Indian gaming company Gameskraft terminated 280 employees on November 10, 2025, bringing the company's total workforce reduction to 400 positions as the online gaming platform restructures operations amid challenging market conditions. The Bangalore-based company, known for its popular RummyCulture and Poker games, implemented the cuts across multiple departments as part of a broader cost optimization strategy.

The layoffs represent a significant downsizing for Gameskraft, which had expanded rapidly during the pandemic-era gaming boom. The company cited shifting market dynamics and the need to streamline operations as primary factors behind the workforce reduction. Industry analysts point to increased regulatory scrutiny in India's online gaming sector and intensified competition as contributing pressures.

Context of the Decision

Gameskraft's workforce reduction reflects broader challenges facing India's online gaming industry. The company has faced mounting pressure from regulatory changes, including new taxation policies on online gaming platforms that have compressed profit margins across the sector. The cumulative layoff count of 400 employees suggests the company is implementing a phased restructuring approach rather than a single mass reduction event.

The gaming platform, which operates skill-based games including rummy and poker, has encountered headwinds from evolving state-level regulations that have restricted operations in key markets. Several Indian states have implemented stricter oversight of online gaming platforms, forcing companies to reassess their operational strategies and cost structures.

Market saturation in the online gaming space has also intensified competition for user acquisition, driving up marketing costs while user growth rates have plateaued compared to the explosive expansion seen during 2020-2022.

Impact on Operations

The layoffs affected multiple departments within Gameskraft's organizational structure, with technology, marketing, and customer support teams experiencing the most significant reductions. Engineering roles comprised approximately 40% of the terminated positions, as the company consolidates its product development initiatives and reduces redundant technical functions.

Marketing and user acquisition teams saw substantial cuts as Gameskraft scales back its customer acquisition spending in response to higher acquisition costs and lower conversion rates. The company's customer service operations were also streamlined, with some functions being automated or outsourced to reduce operational expenses.

Regional offices in Mumbai and Delhi experienced proportional reductions, though the company's primary Bangalore headquarters bore the largest share of the workforce cuts. Gameskraft indicated that remaining employees would take on expanded responsibilities as the company operates with a leaner organizational structure.

Company Financial Background

Gameskraft raised $50 million in Series A funding in 2021, achieving a valuation of approximately $1.2 billion during the peak of India's gaming sector growth. The company had leveraged this funding to expand its workforce and enhance its technology platform, hiring aggressively to capitalize on surging demand for online gaming during the pandemic.

However, the company's revenue growth has decelerated significantly from its 2021-2022 peak, with monthly active users stabilizing rather than continuing the exponential growth trajectory that justified its previous expansion plans. The gaming platform generates revenue primarily through rake fees on skill-based games and tournament entry fees.

Recent financial performance has been impacted by increased compliance costs related to new gaming regulations and higher tax obligations that took effect in late 2023. These regulatory changes have compressed the company's profit margins and necessitated a reassessment of its operational scale.

Industry Outlook

Gameskraft's layoffs align with a broader trend of workforce reduction across India's gaming and technology sectors. Several prominent gaming companies have implemented similar cost-cutting measures as the industry adjusts to a more mature market environment with slower growth rates.

The online gaming sector in India faces ongoing regulatory uncertainty, with the government continuing to refine its approach to taxation and oversight of skill-based gaming platforms. This regulatory environment has created challenges for long-term planning and investment decisions across the industry.

Despite current headwinds, industry experts maintain that India's gaming market retains long-term growth potential, driven by increasing smartphone penetration and digital payment adoption in tier-2 and tier-3 cities.

Conclusion

Gameskraft's workforce reduction represents a strategic recalibration as the company adapts to a more challenging operating environment. The layoffs position the company to operate more efficiently while maintaining its core gaming offerings, though the success of this restructuring will depend on the company's ability to stabilize revenue streams and navigate ongoing regulatory developments in India's evolving gaming landscape.